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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Submitting False Invoices on Jet Engine Contract

The U.S. District Court for the Southern District of Ohio found that United Technologies subsidiary Pratt & Whitney had violated the False Claims Act by submitting inflated invoices for jet engines it supplied to the Air Force in the 1980s. Because the court found the government had not suffered any actual damages, the court entered judgment in favor of the government for the statutory maximum fine of $10,000 per invoice submitted, for a total of $7,090,000. In November 2010, the U.S. Court of Appeals for the Sixth Circuit affirmed the district court’s liability determination but remanded the case to allow the government to pursue its common law contract claims and for a recalculation of damages. On remand, the court ordered United Technologies to pay $664 million in damages, penalties and interest. In April 2015, the Sixth Circuit found that the government failed to prove damages beyond the $7 million, reversed the district court and remanded the case. In June 2016, the district court awarded $11 million in penalties, interest, and disgorgement of profits.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Defense – Air Force
Contracting Party
Defense - Air Force
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Final Judgment
6/22/2016
Contractors Involved Penalty
Total
United Technologies Corporation $11,050,790
Further Information Released
Final Judgment 6/22/2016
3rd Amended Complaint 12/18/2004
DOJ Press Release 3/3/1999

Federal Contractor Misconduct Database